INDIAN AVIATION NEWS, INDIAN AVIATION NEWS Hyderabad: The Airport Economic Regulatory Authority (AERA) has directed Delhi International Airport (DIAL) run by GMR group to stop collecting domestic cargo handling charges from air cargo agents. The authority issued the order based on a representation by Domestic Air Cargo Agents Association of India (DACAAI). The DACAAI had moved AERA against the levy of Terminal, Storage and Processing (TSP) charges, X-Ray screening charges among others by Delhi Cargo Service Centre Pvt Ltd (DCSC) and DIAL at the new terminal at IGI Airport in the national capital. The DACAAI in its application pointed ou that all domestic airlines provide the warehouse and X-Ray screening facilities and the overall freight charges by the airlines are inclusive of the charges for these facilities. Presently DCSC charges Rs 3.50 per Kg as TPS charges for both inbound and outbound cargo movements. The DACAAI also argued that neither DIAL nor DCSC had obtained necessary permission from the AERA. Cat-III ILS sought at Rajasansi airport Chandigarh: The Amritsar Vikas Manch has demanded that the Rajasansi International Airport should take measures to prevent discomfort to passengers during winters. Like Delhi airport, where the Delhi International Airport Private Limited (DIAL) installed Category III instrument landing system (ILS) three years ago to tackle the problem of fog, Rajasansi, too, should take similar measures, said AVM patron Dr Charanjit Singh Gumtala. Cat-III allows compatible aircraft and trained pilots to land even when the runway visibility is up to 50 metres. The Amritsar airport has Cat-I ILS at present. Airfares to shopping destinations soar Mumbai: Despite a month left for the festival, flights to shopping and leisure destinations such as Dubai, Singapore, Hong Kong, Malaysia and Thailand are full, and fares have shot up between Rs 8,000 and Rs 14,000 across four airlines: Jet Airways, Kingfisher Airlines, Air India and Singapore Airlines. A Mumbai-Dubai return ticket, normally available for Rs 16,000, is selling for Rs 24,000. Of these, Singapore is the most expensive destination on the Diwali week, with fares having almost doubled. It’s all about high demand, said travel agents. “Laxmi Puja is on November 5. People are leaving for vacations the next day and schools re-open only after November 15,” said Anup Kanuga, owner Bhatija Travels. Tour managers said the demand to these destinations peak during Diwali because people flock there to shop. Saudia Airlines to operate Haj flights from Mangalore Mangalore: The Union Ministry of Civil Aviation has approved Saudia Airlines to operate its chartered flights for Haj pilgrims from Mangalore Airport to Saudi Arabia this year, according to M.R. Vasudeva, Director, Mangalore Airport. He told The Hindu that Air India Express will not operate its flights for Haj pilgrims from here this year. Kalanithi Maran’s company Kal Airways buys shares in Spicejet Kal Airways Pvt Ltd has purchased a 5.03 per cent stake in Spicejet for an estimated Rs 91.52 Crore. Kal Airways Pvt Ltd is owned by Kalanithi Maran of Sun TV and the purchase will be made up of 19.37 million shares in SpiceJet at 47.25 Indian rupees for every share. The deal was done via an off-market transaction and comes as part of the larger deal to acquire 37.7 per cent in the firm. With this fresh purchase, Maran's direct holding in SpiceJet now stands at 17.72%. the acquisition of the SpiceJet stake is pursuant to a share purchase deal done four months ago that involved Maran, with Kal Airways Pvt Ltd meant to purchase 37.7 per cent in Spicejet from US investor Wilbur Ross and Royal Holdings Services, held by the Kansagra family, for around Rs.800 Cr. Begun five years ago, the airline is eligible to fly abroad and had approached the Indian government for permission to operate regular flights to Dhaka, Kathmandu and Colombo. Airlines in India have to fly at least five years on domestic routes before they are eligible to fly overseas. SpiceJet fulfilled that requirement in May. Sovereign guarantee to cut AI interest The National Aviation Company of India Ltd (Nacil) will be able to save more than 30 per cent on its interest payment per year, as the finance ministry recently agreed to furnish sovereign guarantees on loans raised by the company which runs Air India [ Images ]. Nacil pays Rs 1,800 crore (Rs 18 billion) a year as interest to banks. "We will be able to save Rs 550 crore (Rs 5.5 billion) per annum on the entire working capital borrowing of Rs 18,500 crore (Rs 185 billion)," said a top Air India official, who did not want to be identified. "Our interest payment on the working capital loan is Rs 1,800 crore (Rs 18 billion) and the sovereign guarantee will be of much help to us," said another official on condition of anonymity. With the sovereign guarantee, Air India could reduce its interest rates by up to 150 basis points. The carrier has been looking to convert its high-cost debt to low-cost to extricate itself from financial mess. The working capital loan has been borrowed at an interest rate of 12 per cent per annum. The loan is for payment of employees salary and other operational payments. Melbourne's Air India coup faces a tricky landing Air India's plans to fly to Melbourne, heralded as a coup for Victoria when they were announced in June, are in doubt. Melbourne Airport remains confident that Air India will still fly there, but says the service has been delayed to an unknown date because the airline is yet to gain approval from the Indian government for a new international route. Air India, which is owned by the government, was scheduled to begin daily services between Tullamarine Airport and Delhi from November 1. Advertisement: Story continues below The deal was hailed in June as a diplomatic and economic coup and evidence of Victoria's ability to beat NSW in a bidding war for airlines. But Indian media have reported that India's Civil Aviation Ministry last month rejected the airline's plans to fly to Melbourne for the second time in two months. It has also been reported that an Air India board member wrote to the regulatory authorities to stress that the route would not be viable and would only add to the losses of the cash-strapped airline. Indian Aviation News Indian Aviation News Aircraft `crash lands' at Amausi, 'rescued' Lucknow: It was business as usual at Amausi airport on Saturday -- passengers strolling in the terminal area, CISF jawans carrying out the routine checking drive and airlines officials helping out the passengers as they checked in. Suddenly, at 3.30pm, there was a panic among some airport officials. Alarms flashed messages that an aircraft was heading for a landing with its left engine up in flames. Since it was bound for a crash landing, many casualties were feared in next few minutes. Fire tenders frantically rushed to the air strip. They were followed by the district and police officials. Soon, some doctors from the Sanjay Gandhi Post-Graduate Institute of Medical Sciences too reached the airport. A battery of officials from the fire department in their special gears rushed to the site, while Airport Authority of India (AAI) immediately constituted a help desk. The rescue operation began as firemen used water cannons to douse the flames. Soon everything fell back in order! More so, when it was learnt that the entire exercise was a mock drill, carried out to ascertain the `response time' during a crash landing. Planned by the Airport Authority of India, such drills are a routine affair under the standard operation procedure (SOP). 2 held at IGI for smuggling cellphone memory cards New Delhi: Customs officials nabbed a passenger and the supervisor of a firm hired by DIAL in connection with the smuggling of cellphone memory cards worth over Rs 35 lakh at the IGI Airport. The consignment was left in the toilet by the passenger, Narinder Singh, and then picked up by Sachin Kumar, supervisor of a firm — UDS — hired by DIAL for cleaning and upkeep of the international terminal. Singh, who came to Delhi from Hong Kong in a plane that landed around 9.30 pm on Thursday, was carrying 20,000 memory cards in a small bag. After immigration check, Singh went to the restroom and kept the bag in the wastepaper bin inside the toilet and came out, said additional commissioner Ashutosh Baranwal. Within minutes, it was picked by Kumar. He came out and started moving towards the lift in the arrival hall with the bag. The lift opens into the departure hall on the upper level where customs officials intercepted Kumar. They were nabbed after the customs department laid the trap following a tip-off that a huge consignment will be delivered in the toilet of the international terminal. Air India's unpaid leave scheme: 350 takers and counting New Delhi: Air India's leave-without-pay scheme has been taken up by some 350 employees, or about 1 per cent of the airline's work force, since the plan was launched in July 2009. Sources told Business Line that the number could go up in the near future as several more applications had been received. The scheme allows a person to go on leave for two to five years. Almost 70 per cent of the employees who opted for the scheme are from the erstwhile Air India. The exact quantum of savings for the airline from the scheme was yet to be determined, the sources said. “People have gone on leave at different times and for different periods. Besides, there is a difference in the pay scales of people in Air India and Indian so it will be difficult to put a number on the financial saving,” sources said. Navy changes stance on Dabolim Panaji: Plans for the expansion of Dabolim airport have again flown into rough weather with the navy informing the Airports Authority of India (AAI) that it will not hand over the 12.52 acres it had promised earlier. Although both AAI and navy officials have refused to comment on the issue, documents with TOI show that a meeting held in New Delhi on August 4 rejected the minutes of a meeting held in Goa on April 6 in which navy officials had agreed to the land transfer. AAI was planning facilities for aircraft parking, a parallel taxi track and ramp equipment parking place apart from a multi-level car park on this 12.52 acres. At the August 4 meeting—which took place at the office of the chief of naval staff and was attended, among others, by navy chief Admiral Nirmal Verma and AAI chairman V P Agarwal—the navy declined to part with the land stating that Dabolim is a premier naval air station which has assets equivalent to two Indian Air Force (lAF) air bases. Deputy chief of the naval staff Vice Admiral R K Dhowan informed the AAI chairman that "IN (Indian Navy) had not agreed to hand over additional 12.52 acres of naval land to AAI at Dabolim". This is a major shift from the position the navy had taken at the April 6 meeting. Air India to demand another Rs 2,000 crore to repay debts New Delhi: As the process to infuse Rs 1,200 crore as additional equity in Air India takes shape, the national carrier might ask for another Rs 2,000 crore from the government in the next financial year to repay its massive debt, official sources said on Sunday. The airline would require Rs 3,000-Rs 4,000 crore annually to pay off its debt, which is primarily on account of aircraft induction, according to an official estimation. The monthly interest burden on this count averages at Rs 200 crore, while the debt each month stands at about Rs 300 crore, the sources said. In this backdrop, the airline may ask for another tranche of Rs 2,000 crore as equity some time in the next financial year, the sources said. While the government infused Rs 800 crore in the last fiscal, a note for consideration to the Cabinet Committee on Economic Affairs (CCEA) is being prepared by Civil Aviation Ministry for an additional infusion of Rs 1,200 crore. The second tranche of government funds, to be released after CCEA approval, is also likely to be used for settling outstanding dues and not to enhance the airline's equity base. Foreign no-frill airlines fly into tier-II towns New Delhi: When fly dubai started operations to Lucknow in June, many were surprised. Why would Dubai's first low cost carrier (LCC) choose a Tier II city for its maiden Indian route? Would a metro not have been the obvious choice? But this is good business strategy, something that other foreign carriers have done as well. Air Asia, from Kuala Lumpur and Air Arabia, from Sharjah, fly to various Tier II cities — Trichy, Coimbatore, Kozhikode, Kochi, Lucknow, Nagpur, Jaipur and Ahmedabad. Aviation experts say that Tier II cities have huge potential because they are populous and their residents have increasingly disposable incomes and the desire to travel. Air Asia agrees it was good business thinking on their part to choose Trichy as their first Indian route and follow this up with eight other Tier II cities. Its CEO Tony Fernandes says the Indian market is second only to China. The thinking is obvious. Cheap foreign carriers choose Indian cities that have particular needs or particular meaning to the wider world. Air Asia chose Trichy because it is a popular pilgrimage site. Lucknow was attractive to flydubai because it is one of India's fastest growing cities, with a presence in the manufacturing, commerce, retail and education sectors. Unfortunately, while the Indian skies have opened for foreign carriers, the reverse has not happened. Saturday, October 9, 2010CANADA AVIATION NEWS CANADA AVIATION NEWS MAGELLAN AEROSPACE BREAKS GROUND FOR JSF ADVANCED COMPOSITE TORONTO, Oct. 8 2010 - Magellan Aerospace was honoured to host a visit from The Right Honourable Stephen Harper, Prime Minister of Canada, at its Bristol Aerospace division in Winnipeg yesterday. The Prime Minister joined Magellan in welcoming a group of international and Canadian dignitaries to celebrate the initiation of the new Advanced Composite Manufacturing Facility being constructed in Winnipeg in support of the Joint Strike Fighter (JSF) program. At the event, Magellan Aerospace Chairman of the Board, Mr. Murray Edwards, gave special thanks and recognition for the support of the Federal Government, the other major funding partners, customers, and stakeholders in this major new undertaking. The launch customer for the new Center is BAE Systems in the United Kingdom, who awarded Magellan a contract to produce the JSF F-35 Lightning II horizontal tail components. The $22 million dollar, 13,000 square meter facility will be equipped with advanced technology for the manufacture of complex fabrications and assemblies. Mr. Edwards said, "We are delighted to have this opportunity today to recognize the federal government's contribution to this program, whose actions have helped ensure Canadian companies are confident and competitive leaders in the global aerospace market. The government's investment and commitment to the program since it began in 1997 is truly commendable." Since that initial participation in the Concept Demonstration Phase until today, Canada has garnered unprecedented opportunities in this strategic long-term program to build the F-35 Lightning II aircraft for Canada and eight other partner nations. Magellan's President and CEO, Mr. Jim Butyniec said, "Together, the government, Magellan and our fellow Canadian companies have systemically invested in technology and knowledge growth over the past decade. Step by step we have grown together on the threshold of full scale production, ready to meet the state-of-the art manufacturing processes required for this program. This new facility being constructed in Winnipeg is a celebration of over a decade of nurturing this strategic opportunity", he concluded. Magellan celebrated the unparalleled international government and industrial partnership of the Joint Strike Fighter program, and the success of the many relationships that have been forged to make this expansion a reality. AIRES OF COLOMBIA INTRODUCES BOMBARDIER Q400 AIRCRAFT TO SOUTH AMERICA Bombardier Aerospace welcomed on Wednesday Aires to the growing family of Q400 aircraft operators during a launch event held by the airline in Bogota, Colombia. The carrier is the first Q400 aircraft operator in South America, with four previously owned 78-seat Q400 turboprops. Founded in 1981, Aires serves 22 domestic and four international destinations. The airline’s fleet also includes 11 37-passenger Dash 8/Q200 turboprops, as well as mainline jets. “The first Dash 8 turboprop was introduced into our fleet in 1994, and Bombardier’s Dash 8-100, Q200 and Q300 aircraft have been very good for us,” said Francisco Mendez, Chief Executive Officer, Aires. “With our requirement for additional seating capacity, we decided that our fleet should remain largely based on Bombardier aircraft with our acquisition of the Q400 turboprop.” “We welcome Aires as the newest operator of the Q400 airliner and the first on the South American continent,” said Gary R. Scott, President, Bombardier Commercial Aircraft. “The Q400 turboprop airliner is ideally suited to the short- and medium-haul routes in Aires’ network and will offer the airline outstanding performance and economics with a reduced environmental impact.” Bombardier has booked firm orders for a total of 391 Q400 and Q400 NextGen aircraft, and as of July 31, 2010, 312 had been delivered. The aircraftun service with more than 30 operators worldwide and have logged more than 2 million flight hours and over 2 million landing and take-off cycles. WESTJET RANKS NUMBER ONE IN BRAND SURVEY CALGARY, Oct. 2010 - WestJet today announced that it was the highest ranked airline based on brand equity in a syndicated study conducted by Harris/Decima. The other airlines measured in the study were Air Canada, American Airlines, British Airways, Porter Airlines, Southwest Airlines, United Airlines and Virgin Atlantic. The EquiTrend Study, conducted in August 2010, is a national study and included interviews with more than 15,000 Canadians. The online study included 890 brands and a wide variety of categories, with each brand being rated by at least 1,000 Canadians. Brand equity was measured by rating familiarity with the company, the quality of service and their confidence to use the services. "For WestJet to be ranked number one is a testament to our 7,900 WestJetters who remain committed to providing a world-class guest experience," said Bob Cummings, WestJet's Executive Vice-President, Marketing and Sales. In addition to being the highest ranked airline, WestJet also rated in the top three per cent among all 890 brands in overall connection with customers. The overall connection category measured emotional connection to the brand, practical and aspirational fit with the brand, and a company's ability to deliver on brand expectations. "I am particularly proud of our strong rating in the overall connection category," concluded Bob Cummings. "As WestJet enters a new chapter of growth, we will continue to be passionate in providing our guests with the same fun, friendly and caring service that has been the soul of WestJet over the past 14 years." This latest recognition follows being named among Travel + Leisure magazine's top 10 domestic airlines for the second year in a row and the Airline Staff Service Excellence Award for North America, which WestJet received at the 2010 World Airline Awards in Hamburg, Germany. THREE FISHERMEN RESCUED BY 413 SQUADRON NEAR LIVERPOOL 14 WING GREENWOOD – Search and Rescue Technicians (SAR Techs) from 14 Wing Greenwood successfully rescued three fishermen from their fishing boat near Liverpool, Nova Scotia early Wednesday morning. The fishing vessel, Brute Force1had run aground and sent out a Mayday call, which was immediately relayed to the Joint Rescue Coordination Centre (JRCC) in Halifax at 11.24 p.m. The Coast Guard vessel, Spray arrived on scene and tried to tow the boat to deeper waters, but was unsuccessful. The JRCC then called 14 Wing Greenwood to dispatch one of its CH-149 Cormorant helicopters from 413 (Transport & Rescue) Squadron at 3:12 a.m. The Cornt arrived on scene shortly thereafter and hoisted the three crewmen into the helicopter. AIR FORCE CONTRIBUTES TO HURRICANE IGOR RELIEF Hurricane Igor caused widespread damage across parts of eastern Newfoundland on Tuesday, Sept. 21, 2010, as heavy rains flooded communities, washed out roads and stranded some residents in their homes. Most heavily hit were the Burin and Bonavista Peninsulas. Operation Lama is the Canadian Forces joint response to the devastation caused by Igor. More than 1,000 Army, Navy and Air Force personnel are undertaking a wide variety of tasks during Op Lama: •delivering critical supplies such as food, water, medical supplies and fuel •providing medical evacuation •assisting in moving power crews and materials to repair power grids •delivering generators and re-supplying fuel to main communications nodes •assisting with bridging and road repair and transporting engineering analysis teams. The Air Force’s contributions to the operation have included imaging and reconnaissance flights by a CP-140 Aurora, delivery of freight and personnel to 9 Wing Gander by a CC-177 Globemaster III and numerous flights by CH-124 Sea King helicopters from 12 Wing Shearwater, N.S. delivering supplies and moving personnel. “I just wanted to send a Big THANK YOU to all you guys who came to Clarenville, NL and area to clean up after Hurricane Igor..It’s a great pleasure to have all of you here,” wrote a resident of Clarenville on the Write to the Troops website last Friday. “I was one of the lucky ones who got to meet several of you guys at my workplace and it was a honor to serve you guys on a regular basis..I wish you all the best and salute you for a job well done...Thanks again.” This domestic humanitarian relief mission is led by Canada Command and conducted through Joint Task Force Atlantic. Operation Lamais the official name designated by the Canadian Forces for CF domestic operations involving military response following hurricanes in Canada. CABIN CREW JOBS IN INDIA CABIN CREW JOBS IN INDIA Cabin Crew Recruitment in Pune, India-AIR000K8 Description Is the working environment of a 9 to 5 routine something you would like to make a thing of the past? Our Cabin Crew will testify that it's not just a job, but a way of life. The work can be demanding and strenuous but very rewarding. Hours of work can vary, and include weekends, nights and public holidays. If you have what it takes and enjoy the freedom and responsibility of using your own initiative, carry out your responsibilities with confidence and minimal supervision, have a high level of personal presentation, possess excellent communication skills, and above all be attentive to individual client needs, then working for Qatar Airways could be the career for you. We are one of the fastest growing airlines in the world with an expanding route network covering the Middle East, Far East, Africa, Asia, Europe and America, with a modern fleet of A300, A319, A320, A321, A330 and A340 aircrafts. We are soaring to greater heights by way of expansion and progress and we are based in Doha, a modern commercial centre and growing tourist destination. Benefits As you would expect from one of the world's best Middle-Eastern airlines, the rewards and benefits are excellent. Here is just a taste: · Competitive TAX-FREE package · Company provided furnished sharing accommodation · Medical insurance · Generous airline travel discounts · Promising career prospects and personal development opportunities This is a career opportunity to earn an excellent remuneration package, travel the world and be a flying ambassador for Qatar Airways. To be considered for this opportunity, you need to meet the following: · Minimum age of 20 years · Minimum arm reach of 212 cms (on tip toes) · Minimum high school education/ O levels, with fluency in written and spoken English (ability to speak other languages is an asset) · An excellent level of health and fitness · A willingness to relocate to Doha, Qatar · An outgoing personality, good interpersonal skills and the ability to work in a multi-national team environment Please apply online attaching: · An updated resume · One recent passport and full-length colour photograph against a plain (avoid white) background · The dress code for the photographs is as follows: Females: Business suit with knee-length skirt Hair must be neat and tied back if long Males: Business suit, shirt and tie (Photo Format: Stand facing the camera, with one foot slightly forward, hands relaxed by the sides and a warm open smile) · The images in the following formats: JPG/JPEG or GIF. (Note: Do keep the size below 50KB). Kindly note that selected candidates may be required to attend further interview processes over consecutive days. We would also like to inform you that all expenses and arrangements related to you attending any Cabin Crew Recruitment Processes would be borne / made by you. Apply online: www.qatarairways.com CABIN CREW (FEMALE/MALE)-SPICE JET Minimum Qualification: Higher Secondary Certificate and above Nationality: Indian Age: Minimum 19 Years and Maximum 27 Years* Minimum height: Female 157 Cms /Male 173Cms Weight: In proportion to height Language: Fluency in Hindi & English Energetic candidates with pleasing personality are requested to send their updated resume with coloured photograph (Passport & full length size in Western Formals) to e-mail inflight.careers@spicejet.com * Age criteria will be relaxed for experienced Cabin Crew. Friday, October 8, 2010INDIAN AVIATION NEWS INDIAN AVIATION NEWS Banks ask Oriental to pay Rs 400 cr on Paramount default Mumbai: The state-owned Oriental Insurance has been saddled with claims of Rs 400 crore from five banks, namely, State Bank of India, Bank of India, Indian Bank, Andhra Bank and IDBI Bank. The banks are looking to recover the money paid to the oil companies on behalf of Paramount Airways. The defunct Chennai-based airline had defaulted on bank guarantees issued by these five banks. Disturbed by the development, Insurance Regulatory & Development Authority (Irda) has banned the sale of credit insurance by general insurance companies, except state-owned Export Credit Guarantee Corporation (ECGC). Without mentioning the Paramount case, an Irda order last week said it believed that insurers were underwriting risks which were not governed by a proper regulatory framework or sanction. At over Rs 200 crore, Bank of India has the largest exposure to Paramount’s bank guarantee, while SBI has guaranteed around Rs 80 crore and the others Rs 20 crore each. Promoted by entrepreneur M Thiagarajan, the airline had taken credit insurance cover from Oriental in 2008-09 for its multiple bank guarantees to cover its transactions with state-owned oil companies. Embraer enthused at aircraft market for Tier-II cities New Delhi: Brazilian aircraft maker Embraer is betting big on the growing aviation markets in the smaller cities of India. One of the world's largest aerospace companies and a leader in the category of commercial jets with up to 120 seats, it feels their aircraft will get the benefit of this growth. "Many major routes like Delhi-Trivandrum are not connected through a direct flight because all the airlines operate big aircraft on this route, difficult to fill. Now, with our small aircraft, the airlines can operate direct services and make enough on such routes," said Alex Glock, the company's vice-president (marketing & sales), commercial aviation. "We have met all the airlines in the country and all of them invariably agree to our analysis. We see a great opportunity here, as the smaller cities are to see a lot of growth. We plan to sell 50 aircraft over the next 10 years in the country," Glock said. Of 44 million air passengers in 2009, as many as 27 million were from Tier-II and III cities. The growth projections in number of passengers for smaller cities during 2009-15 is 14 per cent annually. In terms of connectivity, Tier-II and III cities lag. Average daily frequencies to Tier-I cities are 18 but the connectivity to smaller cities is only 2.5. Govt defers nod to Jet Airways, GMR Airport proposals New Delhi: The government today deferred a decision on giving approvals to Jet Airways' proposal for QIP and GMR Airports' plan for a foreign investor in the Bangalore Airport . The Foreign Investment Promotion Board (FIPB) in a meeting earlier this month, however, cleared six foreign direct investment proposals worth Rs 5.46 crore, an official statement said. The statement did not list any reason for deferring Jet and GMR Airport proposals. "Based on the recommendations of the Foreign Investment Promotion Board (FIPB)... government has approved six proposals of Foreign Direct Investment (FDI) amounting to Rs 5.46 crore approximately," the statement added. It also deferred consideration of seven proposals, including Jet Airways' equity investment through qualified institutional placement (QIP) route and GMR Airports Holding's intent to induct foreign equity in an investing company. The government had also deferred the proposals of equity induction in Falcon Tyres and Telecordia Technologies among others. Centre seeks clarifications on Jet Airways QIP Bangalore: The fund-raising plan of Jet Airways, the market leader by passenger numbers, got pushed back again as the government on Thursday sought more clarification on the airline’s qualified institutional placement (QIP) issue. Jet had submitted a proposal to the Foreign Investment Promotion Board for raising $400 million through QIP to deleverage its balance sheet and implement expansion plans. Kapil Kaul, chief executive officer - India and Middle East of airline consultancy Centre for Asia Pacific Aviation, said it since the airline already has an in-principal approval from the government for raising funds from overseas the markets, it should eventually get through. He said the impediment in getting the FIPB approval could be the sectoral limit for foreign direct investment (FDI) in the aviation sector, which is currently at 49%. “FDI cap could be the only issue on which the government must have asked for clarification. On this front, the government could temporarily relax the (FDI) norm in Jet Airways’ case on one-off basis,” said Kaul. Kaul speculated that the government may give its nod to Jet’s proposal to raise foreign funds on the condition that it would bring back its FDI within limits in the specified time. IndiGo will have to wait a year for flying overseas New Delhi: IndiGo Airlines, the most successful low-fare carrier in Indian skies, has to wait another year before it can begin its overseas journey. This, even as competitor SpiceJet began international operations with a flight to Kathmandu this morning. So does IndiGo feel left out? President Aditya Ghosh told DNA in a freewheeling chat, “We were among the last airlines to start domestic operations also and look where we’ve reached.” On Wednesday, this airline received an in-principle approval from the ministry of civil aviation to begin overseas operations in 2011. Ghosh’s optimism on making up for lost time even on international routes does not seem misplaced, given IndiGo’s robust financial performance in the past year. In fiscal 2010, the airline generated Rs720 crore cash on its books. Revenue growth was a healthy 35% to Rs2,664.5 crore whereas profitability shot up five times to Rs550 crore. Ghosh said the airline is “comfortable” with financing its massive fleet expansion programme (adding 150 aircraft) even as it looks to raise substantial amounts of money to finance expansion going forward. IndiGo has already given a mandate to five merchant bankers to devise a fundraising plan — which could be a public offer, debt route or a combination. Taxi in restricted zone at Mum airport, 4 CISF men suspended Mumbai: Four CISF personnel were suspended for a security lapse at the Mumbai airport in which a speeding private taxi entered the restricted operations area this morning setting off an alarm.A taxi of Priyadarshani Cab Services driven by Manisha Pawar (21) was intercepted soon after it entered the operations area from gate number 5 of the International Airport in suburban Andheri, CISF sources said. Pawar, hailing from Pandharpur town in Solapur district, was at the international airport when she claimed to have received a phone call stating a taxi was needed for a passenger at the domestic airport.A catering truck was entering the airport service road from gate number 5 around 10.30 am when the Mumbai International Airport Ltd (MIAL) safety personnel spotted the Mahindra Logan cab closely following it. An alarm was raised and the car was immediately intercepted, sources said, adding the driver was taken into custody and the vehicle seized. "The woman says she had no idea of the route and that she entered the restricted area by mistake," a CISF official said, adding Pawar was handed over to the Sahar Airport Police Station for questioning. The four suspended CISF personnel, including the incharge at gate number 5, were also being questioned. Dilip Patil, senior Inspector at the police station, told PTI that they were verifying Pawar's documents and her background. Airlines oppose Ghial proposal to increase passenger levies Indian air carriers have opposed an increase in passenger levies proposed by the Hyderabad airport operator, saying it risked stifling air traffic growth and hurting an aviation recovery that is still nascent, amid concern that other airports would follow suit and raise charges. GMR Hyderabad International Airport Ltd, or Ghial, has sought to increase the user development fee from Rs340 to Rs500 per departing domestic passenger and from Rs907 to Rs2,825 per departing international passenger. The airport regulator, Airports Economic Regulatory Authority (Aera), has suggested a smaller increase to Rs420 and Rs1,656, respectively, and had sought the views of stakeholders such as airlines and airport operators at a consultation in Hyderabad on 29 September. Around 70% of those who attended the meeting opposed the proposed increase while 30% favoured the move, according to the minutes of the meeting posted on the regulator’s website. Delhi-bound Kingfisher flight returns to Mumbai airport after bird hit Mumbai: The IT 331 Kingfisher Airlines Mumbai- Delhi flight took off at around 0615 hours but returned to Mumbai airport after being airborne for over 15-minutes, due to a suspected bird hit, Kingfisher Airlines spokesperson said. Airline engineers are inspecting the aircraft to assess the damage, the spokesperson said, adding another aircraft is being arranged to carry the passengers to their destination. Dissident Karnataka BJP MLAs holed up at Mumbai airport Mumbai: A big drama unfolded at the Chhatrapati Shivaji International Airport in Mumbai on early Wednesday morning after 12 dissident Bharatiya Janata Party (BJP) MLAs from Karnataka reached the city for an alleged political deal with the Janata Dal Secular (JDS). Around 150 Mumbai BJP workers led by MLC Vinod Tawde forced the MLAs to hole up inside the airport for almost nine hours. Finally, the MLAs flew to Goa after their plan failed. The 12 MLAs have given a letter to Karnataka governor H.D. Bharadwaj withdrawing support and expressing lack of confidence in chief minister B.S. Yeddyurappa. The MLAs left Bangalore on Tuesday morning. They first went to Chennai and then Kochi. They took a Sharjah-Kochi-Mumbai flight of Air India from Kochi and reached Mumbai around 2:30 am. They had a plan to stay in Mumbai and had booked rooms in a five star hotel near the airport Hyatt. As soon as the MLAs came out of the airport Tawde and other BJP workers welcomed them by waiving the BJP's flags. Sensing a trouble for them the MLAs immediately boarded the cars they had booked in advance and went towards Hyatt. After they traveled for 10 minutes the MLAs decided to return to the airport as Tawde and other workers were following them. The MLAs returned to the airport and stayed put in the VIP lounge till 11 in the morning. Finally, they took a Spice Jet flight to Goa at 11:30 am. 70 percent of air passengers want self-service while on a journey The most comprehensive global survey ever undertaken of passenger use of air transport self-service technology has found popular demand is now reaching out into non-traditional areas of self-service as airline passengers demonstrate their increasing ease with online, kiosk and mobile phone channels. While online booking and check-in are nearing their full potential, there is now a clear demand from the travelling public for self-service on other steps of the passenger journey including automated security checks, which are now acceptable to 70 percent of respondents compared to 58 percent in last year's survey. Similarly, the demand for automatic boarding gates is now at 70 percent compared to 57 percent last year. Two-thirds of survey respondents would use kiosks for other purposes including booking/changing a flight; purchasing additional services (e.g. baggage fees, meals), printing bag tags; self-transfer; claiming delayed baggage. In addition, there has been dramatic year-on-year growth in the percentage of passengers using airline websites to book hotels, up from 21 percent in 2009, to 38 percent in this year's survey; car rental, 19 percent to 35 percent. The World's Top 100 Airlines | |
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CANADA AVIATION NEWS CANADA AVIATION NEWS - An aviation row has forced Canada to prepare the evacuation of a military base in the United Arab Emirates, a key supply route to Afghanistan, Canadian Defense Minister Peter MacKay said Monday. "At this point, we will abide by the wishes of the Emirates, and that is that we will be leaving the base," MacKay was quoted by Canadian media as telling reporters in Kandahar, Afghanistan after negotiations between Ottawa and the UAE broke down. The UAE had sought to obtain an increase in the number of flights between Canada and the Emirates, but with the talks ending without an agreement, Canada’s military base in the country looked set for closure. "We are going through the various options that are before us right now, and we’ll continue to do our mission here in Afghanistan primarily and we’ll find other ways to support this mission through other hubs within the region," MacKay said. At stake was a military base near Dubai known as Camp Mirage. On Sunday, the UAE’s ambassador to Canada Mohammed Abdullah al-Ghafli said the Emirates was "disappointed" that protracted negotiations had floundered. "The fact that this has not come about undoubtedly affects the bilateral relationship," he was quoted as saying by the official WAM news agency. The evacuation orders came after the Canadian government balked at the UAE’s demands for more landing rights for its national carriers, Emirates Airlines and Etihad Airways. "We’ll always act in Canada’s best interest," MacKay added, after thanking the UAE for its past support of Canada’s military operations in the country. "And one thing I know about the Canadian forces, they’re very adaptable. They have alternative plans, they have contingency plans." Canada’s Globe and Mail newspaper reported that Ottawa is now planning to relocate its forces, possibly to Cyprus, rather than agree to the UAE’s terms. The Vancouver Sun said Canadian soldiers and pilots would have just 27 days to "pack up and clear out of Camp Mirage" after the negotiations collapsed. UAE warns Canada ties may be hit by lack of air deal Canada’s ties with the United Arab Emirates will be "affected" by the lack of an agreement to expand aviation links between the two countries, the UAE’s ambassador to Canada was quoted as saying Sunday. "The UAE is disappointed that despite intensive negotiations over the last five years, the UAE and Canada have been unable to arrive at an agreement on expanding the number of flights between the two countries," Mohammed Abdullah al-Ghafli was quoted as saying by the official WAM news agency. "The fact that this has not come about undoubtedly affects the bilateral relationship," the ambassador said. The report said that the existing six commercial flights a week fell short of the economic needs and growth potential of both Canada and the Gulf state. The Canadian embassy in Abu Dhabi could not be reached for comment on Sunday, while UAE foreign ministry officials were also not immediately available. But according to Canadian media reports, the country may have to withdraw from a "secret" military base near the UAE transport hub of Dubai as a result of the disagreement. "The Canadian government is now preparing to relocate forces from the United Arab Emirates to somewhere such as Cyprus rather than give in to what it considers unreasonable demands from the host country," The Globe and Mail reported on its website on Friday in reference to the commercial flights issue. The Vancouver Sun said Saturday that "Canadian soldiers and aircrew have only 27 days to pack up and clear out of Camp Mirage, the not-so-secret airbase in the United Arab Emirates that Ottawa established seven years ago to support military operations in Afghanistan." The daily’s website said the UAE suspended a memorandum of understanding on the base on Tuesday, after the Canadian government balked at a demand that "Dubai-based Emirates Airlines and Abu Dhabi-based Etihad Airways... each be granted daily flights between Toronto" and the UAE. About 27,000 Canadians live in the United Arab Emirates, which is one of Canada’s biggest economic partners in the Middle East with bilateral trade valued at about 1.5 billion dollars per year, WAM cited Ghafli as saying. About 27,000 Canadians live in the United Arab Emirates, one of Canada’s biggest economic partners in the Middle East with bilateral trade valued at about 1.5 billion dollars per year, according to UAE officials. In a sign of tensions between the two countries, the UAE on Monday closed their airspace to a plane carrying MacKay, several Canadian media outlets reported. The value of Jazz Air soared more than eight per cent in heavy trading Friday after the company said it will increase rewards to shareholders after converting later this year to a dividend-paying corporation called Chorus Aviation Inc. "We have taken a responsible and balanced approach in setting our dividend policy to provide both investor income and allow financial flexibility to fund growth," chief executive Joseph Randell said in a statement. "In fact, post-conversion, Chorus is expected to offer investors one of the highest dividend-paying stocks in the airline industry," Randell said. The Halifax-based fund announced earlier that a typical shareholder in Ontario and Quebec would receive a higher after-tax return after the conversion, which will coincide with a change in federal tax rules early in 2011. Although the income fund will change its corporate name to Chorus with the conversion, its planes will continue to be branded Jazz. On the Toronto Stock Exchange, units in Jazz Air closed up 38 cents, or 8.15 per cent, at $5.04. The volume of trading was just over 1.6 million units, more than five times the daily average. Airline analyst Rick Erickson said investors were likely reacting to the payout under the new corporate structure. "When you look at the yield on that compared to the value of the share, it's about a little over 10 per cent," said Erickson of Calgary-based RP Erickson & Associates. "It's a high yield," Erickson said. The planned dividend policy of 60 cents per Chorus share annually represents 43 cents of after-tax income for a typical retail investor in Quebec or Ontario, versus the 32 cents after-tax equivalent income under the income trust structure. The move to a corporate structure is being made in response to changes to the new tax rates for income trusts next year. The switch was announced in October 2006 and phased in over the last four years. The conversion plan requires approval from at least two-thirds of Jazz unitholders scheduled for Nov. 9. The aviation industry is experiencing a moderate rebound in travel demand, so the company will be able to sustain the payments after the corporate conversion, Randell said. The change in the Jazz structure should go virtually unnoticed by the average traveller because they will still board planes that carry the well-known Jazz logo. It's only the name of the airline's holding company that will change, said Jazz spokeswoman Debra Williams. "The branding for our airline operations — Air Canada Jazz and Jazz — will not change," Williams said via email. "Therefore areas such as aircraft livery, airport signage, uniforms etc. will not change as a result of corporate conversion, she said. Erickson said it would have been a "very foolish" and expensive decision to change Jazz's name. "I think Jazz if fairly well ingrained, if you will, on the part of Canadian consumers." Randell described the conversion of the fund as "a significant step" in the evolution of the business that will support "our objectives of growth and diversification." Randell said the new corporate brand name, Chorus, will reflect the "harmony, creativity, passion and collaboration" demonstrated by its employees. Erickson said Jazz could eventually turn itself into a full-service airline and undertake sales, marketing and scheduling instead of just providing seat capacity. He also said Jazz could take its model to other countries or regions, such as Europe, and provide capacity in those markets for growth. Jazz Air Income Fund was created as a separate company after Air Canada (TSX:AC.A) was restructured under court protection. Its airline, Jazz Air, primarily sells its capacity to Air Canada although it recently signed a multi-year deal to operate a six-plane fleet on behalf of Thomas Cook, a vacation supplier. |
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